Financing on Multi Units

Hi this is my second post but here goes. I have 2 properties i’m currently looking at. One is for $300,000 has 7 units and a trailer on 5.8 acres of Land. the other is a 4 unit for $185,000. Both bring in Positive cash flow. My problem is I’m semi new to investing, but I’m fresh into my my new career so I can’t show income yet. I can get financing through a couple local lenders since I have good credit, but I can bring nothing to the table(this is my problem.) What route should I go for this, Should I try for a HML on top of getting the mortgage for the property. Shoot me alittle info. Thanks guys n gals.

What do you mean you can bring nothing to the table? There is a possibility to get it done. Keep calling other mortgage brokers.

By that I mean I can bring no cash to the Table what so ever. I’ve expended my savings getting my self started in Real Estate. I just hate to loose these properties I’m interested in. So like I said I need like 100% plus my closing costs covered.


You haven’t provided much information about these deals. However, everything really comes down to how good the deals are. If the deals aren’t very good (basically retail), then you could have a very hard time getting money. If these are really good deals, with at least 30% equity and a positive cash flow after ALL expenses, then you should be able to get the money without too much problem. I often buy properties at 50% to 60% of market value and then finance them with local banks at 70% of market value, giving me cash back at closing. I’ve done this several times in the past year. Take a business plan and detailed cash flow analysis along with other documentation to the bank.

When you close on an apartment building, you will get credit for incoming rents, security deposits, taxes, etc. You can often use these funds as your downpayment.

If the seller is highly motivated, you might be able to take the building over subject to the existing financing. I did this on a multi-unit building recently.

Finally, you could take on a partner who would front you the money.

I’m a little concerned that you appear to be new to REI. Usually, apartments are not the desired way to start. Apartment buildings are not as liquid as single family houses and usually have a lower class of tenants. I would not recommend starting your REI career with aparment buildings.

Additionally, without some cash reserves, what are you going to do about unexpected maintenance, lawsuits, etc. Being undercapitalized is an invitation to disaster.

Good Luck,


Hello, Propertymanager is right. It will be hard for you to start with such a big project. You should start smaller and build up from there. You must crawl first, then walk, then run like crazy.

no there not buildings. The one is a 4 unit multi unit and the other is a 7 unit garden style apartments not really a complex tho. I’m looking at these because they do have positive cash flow and also they are rented so I won’t need to find renters which makes my life easier.

Hello, I still agree with propertymanager to start smaller but you sound very determined to make this work. The deals do sound good. I may be able to help you. Would need more information and do some research. Are these two separate projects in different locations? Have you considered using a Hard Money Lender (HML)? Do you have appraisals? Comps?

Hi yes they are in 2 different locations. I have thought about going with a HML, I guess that will be my next step if the MTG Broker I’m using cannot get anything rolling for me. I do have comps on the one the other is on a secondary if i can get the lower priced one first.